The Biden administration‘s latest student loan forgiveness plan, known as the “Third Mass Cancellation Rule,” has been allowed to proceed after a federal judge declined to renew a temporary restraining order that had blocked the program. The judge also dismissed part of the lawsuit challenging the initiative in Georgia and transferred the case to Missouri.
U.S. District Judge Randal Hall, who initially issued the restraining order on September 5, preventing the Department of Education from implementing the student loan forgiveness plan, issued an order on October 2 that does not extend the freeze past its scheduled expiration date of October 3.
This decision allows the Biden administration to continue with its student loan forgiveness efforts while legal proceedings continue.
The judge also dismissed Georgia from the lawsuit, stating that they lacked standing. The case was originally brought by a coalition of seven Republican-led states including Alabama, Arkansas, Florida, Georgia, Missouri, North Dakota, and Ohio. They challenged the legality of Biden’s debt cancellation program. However, Judge Hall determined that Georgia’s claims of financial harm were speculative and self-inflicted due to their tax laws being linked to federal tax policy.
In his ruling, Judge Hall explained that Georgia failed to demonstrate concrete injury required for proceeding with a lawsuit. He stated that any potential loss of tax revenue resulting from loan forgiveness was too speculative and resulted from decisions made by Georgia’s own legislature.
While Georgia was dismissed from the case, it has been transferred to Missouri where Missouri’s claims will continue to be heard. The judge found that Missouri has a more direct stake in this lawsuit as it houses MOHELA (Higher Education Loan Authority), which could suffer financial harm due to loan cancellations.
The temporary restraining order issued by Judge Hall on September 5 temporarily blocked implementation of what is known as “Third Mass Cancellation Rule” until legal arguments were evaluated. With Judge Hall’s decision on October 2 dismissing Georgia and not extending this restraining order means that at least temporarily there is no block on Biden administration’s plan.
It remains unclear whether plaintiffs in Missouri will seek another temporary restraining order or preliminary injunction against this program.
The lawsuit filed on September 3 names Education Secretary Miguel Cardona along with Department of Education and President Joe Biden as defendants. The seven states allege unlawful mass cancellation attempts amounting hundreds billions dollars in loans by Cardona who quietly instructed federal contractors for initiating cancellation process.
Plaintiffs further claim cost for “Third Mass Cancellation Rule” could reach $146.9 billion adding up $475 billion estimated cost for SAVE (Saving On A Valuable Education) program proposed first time by Cardona in August 2022.
This is third time Secretary unlawfully tried mass cancelation worth hundreds billions dollars loans,” reads complaint filed by states.”Courts stopped him first two times when he tried openly so now he trying through cloak dagger.”
Lawsuit alleges Cardona’s third attempt at loan forgiveness most aggressive yet least legally defensible bypassing legal requirements such as public notice rule requiring sixty days prior notice.
Biden administration’s first attempt canceling student loans blocked when U.S Supreme Court ruled against using HEROES Act authorizing debt forgiveness.
Second attempt related SAVE Plan halted August ninth decision U.S Court Appeals Eighth Circuit later upheld Supreme Court decline overturning it later August.
Department Of education did not respond prior request comment made by Epoch Times regarding this lawsuit
